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Nazara Technologies Share Price Surge: Nazara Technologies' shares rose by up to 5.54%, reaching an intraday high of Rs 1,019 per share after announcing the acquisition of a 15.86% stake in STAN.
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Acquisition of STAN: Nazara Technologies acquired a 15.86% stake in GetStan Technologies Pte. Ltd (STAN) for Rs 18.4 crore ($2.2 million) through an all-cash secondary transaction, reflecting its strategic move to strengthen its position in the esports industry.
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STAN's Strong Market Presence: STAN, an esports community platform founded by Parth Chadha, Nauman Mulla, and Rahul Singh, has a user base of over 12 million, with more than 500,000 paying users and a strong 30-day retention rate of over 60%.
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Strategic Alignment: The acquisition aligns with Nazara’s vision to expand in the global esports ecosystem, leveraging STAN's mobile-first approach and focus on community engagement.
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Diversified Gaming Portfolio: Nazara Technologies boasts a wide-ranging portfolio that includes popular mobile games like WCC, esports platforms such as Nodwin Gaming, and gamified learning apps like Kiddopia, further positioning itself as a key player in the gaming and esports market.
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Market Capitalisation and Industry Position: Nazara Technologies has a market capitalization of Rs 7,662.20 crore, placing it within the BSE SmallCap category and reinforcing its status as a leading diversified gaming and sports media platform.
Image Source - Nazara Technologies
The stocks of Nazara Technologies surged in a big move after an announcement of the latest investment by the company. It rose as much as 5.54% on Thursday, September 12, 2024, with the intraday high at Rs 1,019 apiece. The shares changed hands at Rs 1,001.05, up 3.69%, around noon today. On the other hand, BSE Sensex added 0.24% to 81,717.76.
Stake in STAN Boosts Market Sentiment
The positive market reaction comes after Nazara Technologies bought a 15.86% stake in GetStan Technologies Pte. Ltd, or simply STAN, for Rs 18.4 crore, or approximately $2.2 million. The deal was consummated via an all-cash secondary transaction and added another promising company to Nazara's growing portfolio.
An Emerging Esports Platform
STAN is an up-and-coming esports community platform from India, founded by Parth Chadha, Nauman Mulla, and Rahul Singh. By July 2024, STAN has more than 12 million users, and over 80% are acquired organically and via word of mouth. Monetization is looking great on the platform, with over 500,000 payers and a very high 30-day retention rate of more than 60%. The mobile app of STAN has been consistently trending among the top 51 apps on the Google Play Store and has managed a 4.7-star rating for the last year.
Strategic Investment in Line with Nazara's Vision
The founder and CEO of Nazara Technologies, Nitish Mittersain, also pointed out that this investment strengthens their position in the fast-growing gaming and esports sector. He went on to disclose that the mobile-first, creator-centric approach of STAN aligns well with the vision of Nazara to be among the leading esports companies in the world. This merger will not only increase Nazara's reach but will also help content creators uplift the gaming community.
Alos read: Zerodha backed Nazara Technologies successfully raises Rs 250 Crore
A List and fast-expanding Game and Sports Media for Nazara: Nazara Technologies stands at the front in providing gaming and sports media in emerging markets like Africa and North America. The services that the company provides include interactive gaming, esports, and gamified learning solutions. Its portfolio includes popular brands such as the World Cricket Championship popularly known as WCC, Carrom Clash, and Kiddopia-a gamified early learning app.
Besides, it also runs esports platforms including Nodwin Gaming and Sportskeeda along with Halaplay and Qunami catering to fantasy, trivia, and skill-based games. As one of the early entrants into Indian esports, Nazara continues to grow through its strategic investments and innovative gaming solutions.
Capital Market Capitalisation and Sector Position
Nazara Technologies belongs to the BSE SmallCap category with a market capitalization of Rs 7,662.20 crore. The company has through continued investments across a wide portfolio been steadily building a leadership position in the global gaming and esports ecosystem.
Inputs by Business Standard
Image Source: Multiple Agencies
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